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Sportech announced the acquisition of Data Tote

Initial consideration of GBP 3.1 million, with a deferred payment of up to GBP 1 million depending on performance.

The online and land betting group Sportech plc announced the acquisition of Data Tote Limited, a European provider of on-track and online greyhound and horse race betting services Friday.

Sportech has agreed an initial GBP 3.1 million in payment for the company, with a GBP 1 million deferred payment provision dependent on Data Tote performance.

A company spokesman said that on completion of the acquisition, Sportech will exclusively provide betting services to 41 of the 43 greyhound tracks in the UK and Ireland. He added that the acquisition is expected to be earnings enhancing in its first full year of ownership.

Data Tote brings an incremental customer base with strong year-on-year revenue growth that will broaden Sportech's share of the European betting market, the spokesman said.

Headquartered in Bristol, Data Tote supplies its tote systems and services to 23 of the UK's 25 greyhound tracks and all 18 tracks in Ireland. Beyond its main market in the UK and Ireland, Data Tote's tote betting systems operate in greyhound, trotting and horse racing tracks in Sweden, Germany and Malta.

The company also provides the betting systems and technology at the racecourse for the unique ChesterBet, BangorBet and RiponBet betting services and has recently entered a relationship with Coral, supplying a range of sports pools software and services.

Sportech plans to allow the current management team to continue to build on its core business and growing business opportunities while further developing Sportech's European tote racing business.

Edwin Osborne, CEO and owner of Data Tote, will continue in his role and assume additional responsibility within Sportech's European tote racing business, reporting to Andrew Gaughan, managing director of Sportech Racing.

For the year ended 30 June 2013, Data Tote reported turnover of GBP 2.2 million producing an EBITDA of GBP 400,000 and a profit before tax and exceptional items, of GBP 200,000. Net assets as of 30 June 2013 were GBP 1.2 million. Data Tote's revenues and EBITDA are forecast to grow as a result of a number of significant contracts entered into in 2013.

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